Nigeria loses N557bn from 2013-2017 to contract inflation, unremitted advances, others -PLSI

The Paradigm Leadership Support Initiative (PLSI) at the weekend revealed that the federal government has lost N557 billion between 2013 and  2017 to infractions relating to award of contracts, unremitted advances to staffs, contract inflation among others.

The lead Researcher, Mr Osonuga Adedeji revealed it during PLSI’s 5th anniversary and launch of research themed: Achieving Accountability and Development in Nigeria”.

According to him, federal government lost N17billlion to unretired advances granted to staffs, also N26billion was lost due to abandonment of contracts or projects.

He explained that N17. 4billion was lost due to non-remittance of taxes, also a whooping N188. 6billion was loss due to the non-collection of areas of taxes by the Federal Inland Revenue Services (FIRS).

He further said that the loss of revenue due to non-remittance of Internally Generated Revenue (IGR) to Consolidated Revenue Fund which stands at N157billion.

He said about N51.3billion was also said to be lost due to payment vouchers not presented for audit, over-payment of salaries and allowances, virement without approvals, irregular payment, diversion of grants among other.

The report further covered how government lost fund due to inflation of contracts, unauthorized variations among others.

The lead researcher however, observed the contravention of provisions of financial regulations (2009) by some MDAs including misappropriation and misapplication of funds and also virement of funds without approvals by the national assembly.

The Executive Director, PLSI  Olusegun Elemo during his remarks noted that  many of the infractions deny the ordinary Nigerian access to key services that should improve the quality of lives that could have translated to development.

Elemo explained that the aim of the report was to examine compliance of federal Ministries Departments and Agencies (MDAs) of government with public procurement act, financial regulations and other relevant laws over a five year period to ascertain the level of waste and inefficiency in the utilization of public funds and consequent impact on Nigeria development.